Today I had to adjust the Call side of the December SPX 1750/1760/2070/2080 Iron Condor
Here's the closure of the 2070/2080 Credit Call spread
Buy to close 2 SPX December 2070 Call @12.80
Sell to close 2 SPX December 2080 Call @9.60
Net debit 3.20 ($640 for 2 contracts)
I originally received 1.00 credit for this spread. So the loss is 2.20 or $440 in dollar terms for the model portfolio.
I immediately sold the 2110/2115 Credit Call spread:
Sell to open 4 SPX December 2110 Call @3.82
Buy to open 4 SPX December 2115 Call @3.32
Credit received: 0.50 ($200 for 4 contracts)
Notice that I am not doubling my position size. I'm playing twice the original number of contracts but with half the width of the strike prices so it's all about the same position size. The other option was to play 2 contracts of the 2110/2120 spread, but I was having an awful time trying to get filled on those.
A chart of SPX today after market close for future reference:
The current price of SPX is over 3% above the 50 Day Moving Average. It usually doesn't distance itself much more than that. Also, a bearish divergence has been formed by the McClellan oscillator. This points to some weakness and that's what I'm expecting.
Current positions after this trade:
November RUT 970/980 Credit Put Spread
Will expire worthless next week.
November SPX 1685/1690 Credit Put Spread
Will expire worthless next week.
December SPX 2110/2120 Credit Call spread
A small position. Only $100 credit. 78% probability of success. 37 days to expiration.
December SPX 1750/1760/2110/2115 Iron Condor
The trade described on this article. $340 credit. 78% probability of success. 37 days to expiration.
Check out 2014 Track Record
Related Articles:
Weekend Portfolio Analysis (November 16, 2014)
Weekend Portfolio Analysis (November 22, 2014)
Adjusted Iron Condor expires successfully (December 19, 2014)
Adjusted Call side of Dec $SPX 1750/1760/2070/2080 to 2110/2115
— The Lazy Trader (@lazytrading) November 11, 2014
Here's the closure of the 2070/2080 Credit Call spread
Buy to close 2 SPX December 2070 Call @12.80
Sell to close 2 SPX December 2080 Call @9.60
Net debit 3.20 ($640 for 2 contracts)
I originally received 1.00 credit for this spread. So the loss is 2.20 or $440 in dollar terms for the model portfolio.
I immediately sold the 2110/2115 Credit Call spread:
Sell to open 4 SPX December 2110 Call @3.82
Buy to open 4 SPX December 2115 Call @3.32
Credit received: 0.50 ($200 for 4 contracts)
Notice that I am not doubling my position size. I'm playing twice the original number of contracts but with half the width of the strike prices so it's all about the same position size. The other option was to play 2 contracts of the 2110/2120 spread, but I was having an awful time trying to get filled on those.
A chart of SPX today after market close for future reference:
Current positions after this trade:
November RUT 970/980 Credit Put Spread
Will expire worthless next week.
November SPX 1685/1690 Credit Put Spread
Will expire worthless next week.
December SPX 2110/2120 Credit Call spread
A small position. Only $100 credit. 78% probability of success. 37 days to expiration.
December SPX 1750/1760/2110/2115 Iron Condor
The trade described on this article. $340 credit. 78% probability of success. 37 days to expiration.
Check out 2014 Track Record
Related Articles:
Weekend Portfolio Analysis (November 16, 2014)
Weekend Portfolio Analysis (November 22, 2014)
Adjusted Iron Condor expires successfully (December 19, 2014)
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